This is a once in a life time black swan. No one is factoring in populism in their investment thesis yet. Whoever can figure out populism well enough to predict it first stands to gain a lot of money.
This is a once in a life time black swan. No one is factoring in populism in their investment thesis yet. Whoever can figure out populism well enough to predict it first stands to gain a lot of money.
It's like the show Billions, actual wallstreet does what wsb is doing ALL THE TIME. You make money when someone else loses money, it's simple.
Except this time, the money isn't staying in the fraternity, it's being distributed out to the common folks.
Can't have that it seems.
What WSB daytraders are trying to do is to bleed out these hedge funds by buying in and holding. The stock doesn't even have to increase and the damage to the big hedge funds is already happening, see the situation that Melvin Capital is in. To those who participate it is a david vs. goliath situation.
The thing is, what they are trying to do is not that dumb and actually quite interesting, but they won't get anywhere by remaining "civil". They need this to spread and be on the frontpage of Reddit constantly. Negative or positive press helps, because more regular people want to participate if they hear about it.
I think that this will go down in history. Constant timeouts, organised selling at certain intervals, unnatural spikes, we've yet to hear about the shady stuff that keeps this stock from surging even faster considering the current "virality".
While Billions is one of the more realistic shows about finance, it is far from accurate enough to be compared to real life.
Where Congress (legislative branch) has been unwilling to pass any new regulations upon social media, the SEC (executive branch) is going to shut down these sorts of forums when they become disruptive.
Having worked in this field, while the SEC can sometimes be slow to act, the fact that it made the front page of the WSJ, it is only a matter of time before that hammer comes down.
...and Reddit isn't going to fight for this form (or any form) of Free Speech.
The asset bubble is an unintended consequence, it's the "lesser evil". But it's again the rich get richer.
Revolving door doing what it does best.
Populism of a companies stock doesnt really change the performance of that company. GME will implode eventually and the newest suckers or WSB will be left holding the bag.
Its still a bubble, people are still doing it for financial gain. Its just marketed as "doing this will screw hedge fund managers" to generate more hype.
Its not a new phenomena, its just a new marketing strategy.
https://twitter.com/HenryEnglert/status/1353773947804917760/...
But I love the thoughts and agree with the analysis
Do you honestly believe these people aren't motivated by profit, when they are clearly entering long positions with the intention of driving up GME's price? It's straight up doublespeak.
I threw in 1k with the hope that it will cost some billionaires a lot of money. I'm ready to lose it. Shorts already lost 100+ billion this month.
So now you're out $1000. You contributed to a scheme which ironically was a net loss for retail. If this were really not about making a profit, you'd see people donating their gains or buying shares for other people, and nobody would be cashing out. Are you still in the trade? What are you going to do with your gain/loss?
If anything, WSB celebrates the crazy volatility that can occur with the stocks of interest, and with it the chance to either win big or lose big.
Now, r/bitcoin on the other hand...
// What does this mean for GameStop? Because of traders’ bullish sentiment, a previously failing company is now in the position where it can leverage the overnight increase in value to make real, substantive changes to its business. GameStop can pay off debt through the issuance of new shares or make strategic acquisitions using its newly-valuable shares. [9] A struggling company could become solid simply not because of a change in the underlying business, but because investors decided it should be more valuable. //
only has such an effect if those people who invested in the stock market has more than their risk tolerance invested.
Citadel Securities pays tens of millions of dollars for Robinhood order flow.
I know they rebate Robinhood for order flow (I've even commented about it [1]), but I thought events like this were hard for MM firms to capitalize on because of the unpredictable nature of the price action and the high cost of hedging (there are no shorts available, how do you even delta hedge in that situation?).
Am I missing something?
But will this happen? Massive inflation post-Covid isn't really that far fetched. I think there will be no return to the beforeworld.
just like they harassed andrew left and attacked his family just for him saying he disagrees with the stock